Growing Number of Lyft Drivers Seeking to Use Retirement Funds to Fund Their Vehicle Purchase Without Tax, According to IRA Financial Group

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Increase demand for ROBS product for independent contractor Lyft drivers looking to fund the purchase of a new vehicle

Increase demand for ROBS product for independent contractor Lyft drivers looking to fund the purchase of a new vehicle

The relatively low start-up costs and independence involved that comes with driving for Lyft or Uber is one reason for its popularity with entrepreneurs looking to use the retirement funds to fund a business

New York, NY (PRWEB)July 20, 2016

IRA Financial Group, a provider of Rollover Business Startup Solution (“ROBS”) solutions, has seen a growing interest in people across the country looking to use their retirement funds to fund the purchase of a new vehicle for purpose of working with Lyft or Uber.

Lyft is a ride sharing service that connects riders and drivers by a phone application. Lyft has become extremely popular and is quickly becoming a solid source of income for thousands of Americans across the country who wish to offer their services. Lyft is creating new kinds of opportunity for people who want neither a 9-to-5 job nor a boss. However, there is a cost people must pay to operate their own cars as modern-day taxis and be accepted by Lyft. “We have seen a growing demand from people across the country looking to use their IRA or 401(k) plan funds to purchase a vehicle for purposes of driving for Lyft,” stated Adam Bergman, a partner with the IRA Financial Group. “The relatively low start-up costs and independence involved that comes with driving for Lyft or Uber is one reason for its popularity with entrepreneurs looking to use the retirement funds to fund a business,“ stated Mr. Bergman.

The rollover business start-up (“ROBS”) arrangements typically involves rolling over a prior IRA or 401(k) plan account into a newly established 401(k) plan, which a start-up C Corporation business sponsored, and then investing the rollover 401(k) Plan funds in the stock of the new C Corporation. The funds are then deposited in the C Corporation bank account and are available for use for business purposes. The ROBS 401k solution is a tax efficient way for any entrepreneur looking to use IRA fund to buy a business or franchise without incurring any tax or penalty from a IRA distribution.

With IRA Financial Group’s ROBS structure, the limitation imposed using a Self-Directed IRA LLC to buy a business can be sidestepped because the individual retirement account business owner would not be able to be actively involved in the business, earn a salary, or even personally guarantee a business loan. Whereas, if the business owner used a ROBS strategy, that individual would be able to be actively involved in the business, earn a salary, as well as personally guarantee a business loan without triggering the IRS prohibited transaction rules. “IRA Financial Group’s ROBS solution will allow entrepreneurs the ability to use IRA or 401(k) plan funds to help fund a new business or finance an existing business, “stated Mr. Bergman. “However, the one major downside of using the ROBS solution is that a C Corporation must be used, which is not the most tax efficient entity and can trigger additional taxes to the shareholders,” stated Mr. Bergman.

The IRA Financial Group was founded by a group of top law firm tax and ERISA lawyers who have worked at some of the largest law firms in the United States, such as White & Case LLP, Dewey & LeBoeuf LLP, and Thelen LLP.

IRA Financial Group is the market's leading provider of self-directed IRA LLC “checkbook control” solutions. IRA Financial Group has helped thousands of clients take back control over their retirement funds while gaining the ability to invest in almost any type of investment, including real estate without custodian consent.

IRA Financial Group proudly announces the latest book titled written by tax partner Adam Bergman, Turning Retirement Funds into Start-Up Dreams – financing and retirement funding options for your start-up business is now available for purchase on Amazon. . This is the third book in a four-part series on self-directed retirement plans. The first two books: “The Checkbook IRA” and “Going Solo” are also available on Amazon.